Powerlong to dispose of Hangzhou commercial project for RMB1 bn

Powerlong Real Estate Holdings Limited announced on December 23, 2025, a conditional agreement to dispose of a 100% equity interest in the Target Company, which holds the Target Project, to Lianshang No.1. The initial consideration for this equity transfer is RMB1,000,000,000, subject to adjustment based on audited completion accounts. This transaction is classified as a very substantial disposal, requiring shareholder approval.

The Target Project, a commercial complex in Hangzhou comprising "Hangzhou Binjiang Powerlong City" and "JUNTELS Binjiang Hangzhou" hotel, had a preliminary market valuation of RMB2,406,000,000 as of August 31, 2025. The group expects to record an initial loss of approximately RMB52,000,000 from the equity transfer. Net proceeds, estimated at RMB997,000,000, will be allocated to property development, operating expenses, tax, and restructuring.

Powerlong retains a repurchase right for the Target Equity, exercisable between the third and fourth anniversaries of the completion date (with a possible extension to the fifth anniversary), offering Lianshang No.1 a 12% internal rate of return on its total investment. Lianshang No.1 also has an exit right under specific conditions, including if the Target Project's net operating income falls below the agreed RMB230,000,000 annually.